0
WhaT ARE THE FINANCIAL INSTRUMENTS WHOSE VALUES VARY WITH THE VALUE OF AN UNDERLYING ASSET OR INDEX SUCH AS RATES?
Wiki User
∙ 6y agoWant this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
Is a bank loan a financial asset?
Bank loan is a liability for business not an asset for business.
Is stock an asset?
Yes, stock is an asset. Stocks are proof of a financial investment in a company, and therefore an asset in relation to accounting.
Is customer goodwill a real or financial asset?
no
Do financial statements show the market value of an asset?
In general, financial statements show the book value of an asset, not the market value. The few instances where the financial statements will show market valuations are as follows: * When derivatives are carried for hedge purposes, they are periodically marked-to-market * When an investment appears to materially have lost value (when comparing to similar instruments in the market or, for illiquid markets, when operating cash flows from an investment go down markedly), conservatism requires the asset value to be moved to the "market" or lower price
What is the difference between an Operating asset and a financial asset?
A financial asset are short term investments in private equity, bonds, hedge funds, and other type of securities. Operating assets are investments that include all internal and external factors within a company. Operating assets hold more value than a financial asset.
What are derivative trades?
Derivatives are financial instruments that derive their price and values from their underlying asset. Examples of derivatives are options and futures. Both options and futures derive their value from their underlying stocks. Trading derivatives means buying options or futures instead of the stocks itself mainly for leverage.
Is cash a financial asset or a real asset?
financial-current asset
What are the different Derivative Categories?
A Derivative is a financial product that is derived out of the value of an underlying asset. Derivatives are very popular and are widely used financial instruments. Derivative products can be classified into the following main types: 1. Forwards 2. Futures 3. Options 4. Swaps 5. Warrants 6. Leaps & 7. Baskets
What is a derivative financially speaking Brightbridge Wealth Management asks?
A derivative is a contract with financial performance that is derived from the performance of something else. That "something else" is an underlying asset commonly termed "the underlying" and may be another financial instrument, another derivative, or an index of some kind.
What Is an Underlying Asset in binary options?
An option's underlying asset is a market traded asset, such as currency exchange rate, stocks or bonds, and market indices. Fluctuations in the market value of an underlying asset serve as the basis for the value of an option vis-à-vis an option's strike price.
Is cash vault a financial asset or a real asset?
real asset real asset
How many categories are there of Derivative instruments?
There are many ways to 'categorise'. The most basic form has 2 categories; 1) Forwards (including swaps and futures) 2) Options A Derivative is a financial product that is derived out of the value of an underlying asset. Derivatives are very popular and are widely used financial instruments. Derivative products can be classified into the following main types: 1. Forwards 2. Futures 3. Options 4. Swaps 5. Warrants 6. Leaps & 7. Baskets
Can a tangible asset be a financial asset?
Ive had a similar question like this in a finance exam. Apparently its wrong to say that all financial assets are intangible (i.e. yes, a financial asset can be a tangible asset). Example: Cash
How does the possibilty of financial intermediation increase the efficiency of the financial system?
Financial intermediation is a way of indirect finance. Some lenders prefer lend indirectly via financial intermediaries by using financial instruments. Indirect finance is as important as direct finance for the financial system to survive. Thus, financial intermediation is an asset for an efficient financial system.
Is goodwill a financial asset?
According to the FASB, goodwill is defined as an asset.
Is college education a real or financial asset?
Financial
Can financial market exist without financial asset?
Yes - the future traders - who even call their fictions instruments as if they were something real, demonstrate that a real asset is not needed.Even the folk who play poker for matches realize this. They know there is an arbitrarily large supply of matches, but the enjoyment is in the game, not in the prize. When they mistake a pile of matches for enjoyment, the game is gone.
